A taxpayer who has made a donation to a public benefit organisation, budget institution or State capital company which performs state cultural functions delegated by the Ministry of Culture may choose one of the following options for donations in the taxation year:
- not to include the donated amount in the CIT taxable base of the taxation period, but not more than 5% of the profit of the previous reporting year; or
- not to include the donated amount in the CIT taxable base of the taxation period, but not more than 2 % of the total gross wages and salaries calculated for employees in the previous reporting year for which the mandatory social security contributions have been paid; or
- reduce the CIT calculated in the taxation period for the dividends calculated in the reporting year by 85% of the donated amount, but not exceeding 30% of CIT amount for the calculated dividends.
During the time period from 1 January 2020 to 31 December 2022, taxpayers have the right to reduce the CIT calculated for dividends in the taxation period by 85% of the donated amount, but not exceeding 30% of the calculated CIT amount for the calculated dividends.
In relation to the spread of COVID-19, special norms are additionally provided for donors for donations made in 2020, 2021 and 2022.
Restrictions - tax relief shall not apply if at least one of the following circumstances exists:
- donation is made to a person related to the donor;
- the donation was made with the nature of the remuneration;
- if there is a tax debt.
Inclusion of the name of the performer of donations (also the brand of the company) in the list of donors shall not be considered a donation with counter-liability, if the placement of the name of each individual donor (also the brand of the company) does not exceed 1/20 of the text area.